Community Health Systems has rejected a $2.4 billion buyout offer for its eight Fort Wayne, Ind., hospitals, saying Monday the proposal by physicians and private-equity players came in at least $1 billion lower than what it was worth.
The face of Community Health Systems would change dramatically if the hospital giant accepted a physician-led buyout offer for its eight hospitals in Fort Wayne, Ind. The eight hospitals that make up the Lutheran Health Network generate 15% to 20% of CHS earnings.
Community Health Systems CEO Wayne Smith's total compensation decreased from $10.4 million in 2015 to $5.8 million in 2016.
Chinese billionaire Tianqiao Chen, the largest shareholder of Community Health Systems, signaled Monday that his passive investment in the struggling hospital chain could turn activist.
Community Health Systems has found a buyer for its 125-bed Stringfellow Memorial Hospital in Anniston, Ala., the 16th hospital that it has agreed to divest since beginning a restructuring last year. The hospital will sell for $25 million.
Community Health System CEO Wayne Smith and CFO Larry Cash attained just 13% and 15%, respectively, of their financial and operating targets in 2016.
Larry Cash, the long-time chief financial officer at Community Health Systems, is retiring in May, the hospital chain announced Wednesday.
Community Health Systems' aggressive divestiture and fourth-quarter performance caused its stock to jump 32% in mid-afternoon trading Tuesday. But CHS' rally to around $9 a share is a far cry from the $64.04 stockholders enjoyed in June 2015.
North Tide Capital and Camber Capital Management, each with activist histories, have sold their entire stakes in troubled Community Health Systems. Chinese billionaire Tianqiao Chen remains CHS' largest shareholder with a 13.8% stake.
Rachel Seifert, the top attorney at Community Health Systems, is retiring at the end of March after spending almost two decades as the hospital company's first and only general counsel. Separately, Allen Carroll, the longtime CEO of Bon Secours St. Francis Hospital in Charleston, S.C. is retiring...
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The big for-profit chains nowadays are selling rural hospitals because, even if they are profitable, they can't generate the margins that shareholders demand.